Digital readouts would be a nightmare for pilots. You don't want to look down and see 107 knots, you want to see where the needle is very quickly in relation to the various other gauges you need to read with a glance. The position of the indicator is what you notice, not the specific airspeed or attitude or compass heading. The frequencies on the radios and transponder are digital. Even in "glass cockpits", they display analog style gauges for most things of importance.
You learn to scan the gauges in a specific T shape and you notice if something is "off" without having to read some digital output. This is why nearly all cars went back to analog gauges even if they are LEDs.